Gold still in Neutral zone / Daily chart #MA50 is near

General outlook on Gold: The Short-term Price-action is showing Bullish signs as yesterday's U.S. opening delivered flat movements, exactly what I have been expecting. I can spot idle movements on Hourly 4 chart with #1,847.80 clear Support, Gold is Trading within my predicted values as it stopped the uptrend, and it is worth noting that both correlating assets are working favorably to my outlook, DX is on a Channel Down while Bond notes found the Support and engaged the recovery. Visible though on the Hourly 4 chart, all indicators showing Bull values (Technically Gold’s fair price would be around #1,875.80) and can spot that Gold should break the Rectangle with clear Higher Low’s and Lower High’s, as I need to wait for a turn on DX and Bond notes. See how the very same divergence has Traded since October #7. On November #6 almost near the Higher High, Price-action started rising on the Channel Up, but once the it broken the Resistance, dipped again and almost formed a new Lower Low, when Fundamentals left the main stage / which is main evidence that these are not usual Trading sessions as Gold is Trading on huge Swings, as I can’t rule out repetition of mentioned variance. Then again after mentioned Low, Gold started rising until the next Bull Divergence (which means, after #1,910.80 and #1,920.70 in extension, I expect parabolic decline towards #1,750.80 test/Medium-term). But since Resistance is broken on multiple occasions, if #1,861.80 gets invalidated (Daily chart #MA50), I may see quiet a Bull session today. All this Price-action prints a decent Buy opportunity for me, if Resistance breaks. If I had to take a Short-term guess regarding what is going to happen on today’s session, I would note an idle movements until Wall Street opening Bell and gradual #1,875.80 test. However, if #1,847.80 Support breaks, it should point to #1,834.80 extension. It is worth noting that there is emerging Death Cross on Hourly 4 chart, and last #4 out of #5 times Gold respected it, means that I shouldn’t pay attention to it. It is yet to understand which side will prevail / Technical or Fundamental.


Technical analysis: Decent decline on late U.S. session yesterday's session as current configuration offers no major moves, as Gold is still Trading within Neutral zone. It was textbook Selling opening which I doubted / with the Stimulus speculations still mentioned, Gold could be a Bull option and invalidate Technical proper trend. The last four (including the current one) Hourly 4 chart candles have been within the #1,845.80 - #1,855.80 range (Xau-Usd as always on my commentary) with Hourly 1 and Hourly 4 flat Neutral. This doesn't offer any meaningful conclusions for today’s E.U. session (even though that Gold risen more than #18 points), not even on a Hourly basis. I mentioned last week that this is a Neutral territory with no apparent trend but, as discussed Hourly 4 Bollinger Bands can be used as an entry - it is surely not my suggestion to Short-term Traders who didn’t took Volatility into account. Daily and Weekly chart are Bearish and keep in mind that as discussed throughout this week, the trend is Bearish most likely because the Daily chart and since DX is pulling back as next week approaches and counterbalances the soaring Bond notes, keeping Gold on equilibrium until one of the two reverses. Personally, I give more probabilities to the upside from this point. #MA50 on Hourly 4 chart rejected the Price-action on multiple occasions, but it got invalidated, if #MA50 on Daily chart breaks, Gold will be calling for #1,885.80 contact point. If however #1,847.80 breaks, I will use that as an Selling opportunity towards #1,834.80 and #1,826.80 upper Lower Low extension.


My position: As discussed above, upside seems limited if #1,861.80 gets preserved, so I will Buy only if #1,861.20 breaks, Targeting #1,880.80. However, if #1,847.80 breaks, I might engage Selling order calling for #1,836.80 Support, then if broken /I will pursue #1,826.80 in extension. If #1,826.80 breaks, I will engage #1,805.80 set of Selling orders.